Blank_Alttext
Home  |  Disclaimer  |   Blank_Alttext
Share |
Blank_Alttext  
Blank_Alttext
Blank_Alttext
 
  QUICK NAVIGATOR
Blank_Alttext
blank About Arrow - About WSC
blank
About WallStreetCourier.com
blank
Investment Process
blank
Advisory Service
blank
Testimonials
blank
News
blank
First Steps
blank
blank
 
Home » About » Investment Process
heading_blank1

The Investment Process of WallStreetCourier.com

heading_blank2

Systematic market research and transparent approach (WSC Smart)

WallStreetCourier.com offers its members a strong weekly market research relying on a transparent investment approach based on our published technical market indicators (WSC-Smart). WallStreetCourier.com believes that a clear and understandable investment process (WSC-Smart) will deliver more predictable results and allows members to understand easily the underlying drivers of our weekly market research.

Consistent performance across different market environments

WSC-Smart aims to deliver more consistent performance across different market environments. Rational decision making process based on our published technical market indicators which are embedded into our weekly market research will deliver consistent results and aid transparency.

 

The end result of this investment process is a highly systematic weekly market research (WSC Smart) to ensure consistent risk-adjusted returns across different market environments.

 
The end result of this investment process is a highly systematic weekly market research (WSC Smart) to ensure consistent risk-adjusted returns across different market environments.  

Identify trends by applying technical analysis!

  • Trends tend to persist over time and therefore invest in the direction of the trend measured by different technical market indicators
  • Trends can be measured by drawing trend lines or by using technical trend indicators
  • Use appropriate trend indicators according to your trading approach. Day traders should use short term trend indicators like the Trend Trader Index or Modified MACD while traders should focus on a mid-term trend Indicators like the Global Futures Trend Index
  • It is impossible to buy at the lows and sell at the highs (or sell at the highs and buy at the lows) consistently, but by following the trend, it is very likely to catch 70 to 80% of the right market movement
  • Do not trade against a trend that is confirmed by strong breadth, no matter how much it hurts to miss an opportunity
  • Never trade a trendless market as this will just result in small gains and small losses and is therefore at best a zero sum game if you not take transaction costs into consideration
  • Strong trends are confirmed by strong market breadth

Measure the breadth (strength) of a trend by using technical breadth indicators!

  • Market breadth tends to lead a trend and therefore it should be watched carefully using technical breadth indicators
  • Market breadth (e.g. up-volume vs. down-volume, advancing stocks vs. declining stocks, new highs vs. new lows etc.) gives investors a unique view of the underlying strength of an index. If only a few large stocks are rallying, it will boost the major averages, giving the impression that the market is very strong but a trend reversal may be ahead
  • Trends which are not confirmed by breadth are likely to reverse and therefore you should use close stops in such a case
  • If breadth remains strong, buy into weaknesses or sell into strength
  • Use oscillators for taking profits during trends, able to average down your portfolio if necessary
  • Use appropriate breadth indicators according to your trading approach
    • Day Traders should use short term breadth indicators (e.g. Daily Up-/Down Volume Index Daily, Trin Daily etc.)
    • Traders and Long Term Investors should use mid- to long-term oriented breadth indicators (Upside-/Downside Volume Weekly, High-Low Index Weekly, Advance-/Decline Index Weekly etc.)

Follow smart money, avoid dumb money and measure investors sentiment!

  • Smart Money are investors who have the best possible information available, like insiders, NYSE specialists, or hedge funds, and often spot trends before others do
  • Follow Smart Money, if they are buying into weaknesses or selling into strengths
  • Do not fight Smart Money if the trend is not supported by breadth
  • Dumb Money are public investors, who are most of the time wrong with their market decision
  • Do not follow Dumb Money, if they are buying because prices are low and selling just because prices have risen too far
  • Buy if Dumb Money is selling and sell if Dumb Money is buying
  • Investors Sentiment can be measured by following surveys like Market Vane and the AII Bull & Bear Index
  • A sustainable trend needs the enthusiastic participation of the crowd
  • If the crowd gets too optimistic (it is likely that the rally will run out of new participants) markets can easily fall
  • If markets are declining and investors pessimism gets to an extreme, markets are likely to reverse as there are no more sellers left!

 

Interested in more technical analysis? Download our ebook of Technical Market Indicators for free!

Complex Technical Analysis Made Simple

Learn how to build a rational decision making framework (systematic trading model) based on different kinds of technical market indicators.

 

   
The E-Book of Technical Market Indicators 2.0 - Download the new version for free!

Complex Technical Analysis Made Simple

A detailed instruction on how to combine different kinds of indicators to a sound investment process

Content:

  • Trend indicators
  • Breadth indicators
  • Contrarian indicators
  • Oscillators
  • and many, many more
   
blank_download_table icon_download_table Download our E-Book of Technical Market Indicators now for free (pdf-file)
 
blank_bottomline  
Go to top Top  
The Site of Market Technicians, Market Timers & Day Traders  
blank_bottomline  
The Membership Benefits of WallStreetCourier.com
blank_1
blank_membership_benefits
 checkbox_Proven & Unique Technical Market Indicators  Technical Market Indicators
blank_1 checkbox_Powerful Market Indicators Powerful Market Indicators
blank_1 checkbox_The World Famous Smart Money Flow Index The Smart Money Flow Index
blank_1 checkbox_Effective Trend Indicators Effective Trend Indicators
blank_1 checkbox_Powerful Breadth Indicators Powerful Breadth Indicators
blank_1 checkbox_Inimitable Options- & Contrarian Indicators Great Options Indicators
blank_1 checkbox_Inimitable Options- & Contrarian Indicators Inimitable Contrarian Indicators
blank_1 checkbox_Proven Smart- & Dumb Money Indicators Proven Smart Money Indicators
blank_1 checkbox_Proven Smart- & Dumb Money Indicators Proven Dumb Money Indicators
blank_1_Technical Market Indicators blank_1
hor_dotted_Model Portfolios
 checkbox_Model Portfolios  Model Portfolios
blank_1 checkbox_The best ETF Portfolios The best ETF Portfolios
blank_1 checkbox_WSC All Weather Model Portfolio WSC All Weather Model Portfolio
blank_1 checkbox_WSC Global ETF Model Portfolio WSC Global ETF Model Portfolio
blank_1 checkbox_WSC Inflation Proof Retirement Model Portfolio Inflation Proof Retirement MP
blank_1 checkbox_WSC Sector Rotation Strategy WSC Sector Rotation Strategy
blank_1_Model Portfolios blank_1
blank_1 blank_1 blank_1
blank_membership_benefits
hor_dotted_Model Portfolios
 checkbox_Heat Maps  Heat Maps
blank_1 checkbox_Global ETF Momentum Heat Map Global ETF Momentum Heat Map
blank_1 checkbox_SPDR Sector Momentum Heat Map SPDR Sector Momentum HM
blank_1_Heat Maps blank_1
hor_dotted_Heat Maps
 checkbox_Weekly Technical Market Comment  Technical Market Comment
blank_1 checkbox_Profitable Long & Short Advice Profitable Long & Short Advice
blank_1 checkbox_Learn From Experts Learn From Experts
blank_1 checkbox_Follow our Trading Advice Follow our Trading Advice
blank_1_Technical Market Comment blank_1
hor_dotted_Technical Market Comment
 checkbox_Dashboards  Dashboards
blank_1 checkbox_Indicator Dashboard Indicator Dashboard
blank_1 checkbox_The CFTC/CoT Dashboard The CFTC/CoT Dashboard
blank_1_Dashboards blank_1
hor_dotted_Dashboards
 checkbox_Fully Packed PDF Slides  Fully Packed PDF Slides
blank_1 checkbox_WSC Technical Market Indicators Paperback (PDF file) WSC Technical Market
blank_1 checkbox_Indicators Paperback Indicators Paperback
blank_1 checkbox_WSC Compendium For The COT Report (PDF file) WSC Compendium: COT Report
blank_1_Fully Packed PDF Slides blank_1
blank_1 blank_1 blank_1
blank_membership_benefits
 checkbox_Commitments of Traders Report (CFTC/CoT)  Commitments of Traders
blank_1 checkbox_CFTC/CoT Charts for more than 46 markets CFTC/CoT Data for more
blank_1 checkbox_CFTC/CoT Charts for more than 46 markets than 42 markets
blank_1_Commitments of Traders blank_1
hor_dotted_Commitments of Traders
 checkbox_Data Download  Data Download
blank_1 checkbox_Download our entire published indicators Download our entire indicators
blank_1 checkbox_CoT-Data (Commitments of Traders) since 1986 CoT-Data since 1986
blank_1 checkbox_Heat Maps Heat Maps
blank_1 checkbox_Extended Daily Market Statistics Extended Daily Market Statistics
blank_1 checkbox_Weekly Market Statistics Weekly Market Statistics
blank_1 checkbox_Short Interest Data for more than 8,000 U.S. stocks since 2005 Short Interest Data
blank_1_Data Download blank_1
hor_dotted_Data Download
 checkbox_Day Trading Patterns  Day Trading Patterns
blank_1 checkbox_Discover the secrets of the pros Discover the secrets of the pros
blank_1 checkbox_Beat the market by trading only Beat the market by trading only
blank_1 checkbox_on certain market behaviors! on certain market behaviors!
blank_1_Day Trading Patterns blank_1
 
blank_bottomline  
The Site of Market Technicians, Market Timers & Day Traders  
Go to top Top
 
 
blank_bottomline  
blank
blank
© 2013 WallStreetCourier.com